tv BBC Business Live BBC News May 21, 2018 8:30am-9:01am BST
this is business live from bbc news, with maryam moshiri and sally bundock. trade war on hold — the united states and china call a truce and agree to drop their tariff threats while they continue to talk. live from london, that's our top story on monday 21st may. the world's biggest economies suspend trade tariffs, after talks aimed at persuading china to buy $200 billion of us goods. we'll have reaction from china. and two italian populist parties are set to formally announce plans to form a coalition government. but can they agree on an economic policy? we'll have the latest from the
markets following the opening of european stocks. and we'll be getting the inside track on how one charity is helping young girls from rural india to become top level athletes while learning life skills in the process. coffee chain starbucks announces a new policy to allow nonpaying guests to sit in cafes and use its toilets. do you think it's ok to use the facilities at a cafe without buying anything? let us know. just use the hashtag #bbcbizlive. hello and welcome to business live. the united states has suspended proposed sweeping tariffs on china. it's a gesture that will temporarily ease tensions between the two nations, but rapidly increase pressure on president trump to secure the type of tough deal that he has long said is necessary to protect american workers. on sunday, steven mnuchin, the treasury secretary, said that the planned tariffs
on as much as $150 billion worth of chinese goods were now off the table, while the talks progressed. we can now talk to our correspondent, whojoins us we can now talk to our correspondent, who joins us from shanghai, robin brant. it looks to me as if china has really come out on top in terms of the latest issue nations? well, that's certainly what some in the state—run media are saying, this has been described as a win—win situation, that phrase is very common when it comes to reporting here in terms of chinese diplomatic efforts. and, of course, the threat of sanctions against not just solar panels, steel and aluminium but some 1300 or so products, was the biggest weapon that the united states was wielding, the biggest weapon that donald trump was wielding in this confrontation with china, and for now that has gone away. as you said, steve
mnuchin, the treasury secretary, has said it is now off the table, which is good news for china. and it is good news for the united states as well, but this is temporary. don't be surprised if round three of these talks breaks down. and look at what the president's top economic adviser was saying in some of the political programmes in washington yesterday — there is no agreement for a deal, he said, there is simply a communique,, too,. and that is a bit vague, isn't it, about how statements go and doesn't tell us much about what we can expect? no, there is no detail at all. in fact there are some who see thejoint at all. in fact there are some who see the joint statement that came from the chinese and the american side issued by the white house on saturday is simply a holding pattern. there is lots they disagree about, they don't want a trade war on either side spite the fact the president believes they are easy to win, believes they are good things —
that's what he has said in the past. but the wording of the statement talks about a consensus on taking measures to substantially reduce the us deficit in goods, it talks about agreeing on a meaningful increase in us agriculture and energy exports, agreeing to strive to create a fair playing field when it comes to trade. all those things are aspirational, none of them are detail. the italian government could be about to end 11 weeks of deadlock following its general election in march. the country's two anti—establishment parties, the five star movement and the league occupy the most seats in parliament and they've put forward a joint plan for economic reform. the potential coalition has proposed an ambitious programme of spending, including a basic income worth over $900 per month for the poorest families. earlier drafts of the economic plans suggested that the government could seek to leave the euro. but the latest document has dropped this controversial proposal.
european leaders will also breathe a sigh of relief that the two parties have rolled back on another of their demands — the final draft does not suggest that the government will request the european central bank to cancel nearly $300 billion of italian debt. paola subacchi is the director of the international economics department at chatham house. lovely to see you. so, tell us a bit more about these two parties that are having to form a coalition, they have quite a few differences of opinion, the 5—star movement and the league? actually they are on tourney opposite spectrums but there is some convergence is well, particularly in economic terms, which is on the pension reforms and in particular the measures which were introduced in 2011 in order to help italy with its rising and growing public
deficit and debt. the pensions issue is huge for italy, just put it into perspective for viewers from elsewhere in the world, it was a real problem in terms of being able to pay out of these pensions are honest decades ago? exactly. actually italy is now well ahead in terms of pension reforms, certainly compared to the other eurozone countries. but obviously, we think it will be the new government, and we think they will move back and change some of the measures in the pension reform and that will obviously put back italy to where it was seven yea rs obviously put back italy to where it was seven years ago. looking at the italian public, how much appetite is therefore these types of reforms? well, italy was under a really really devastating economic crisis, which was founded on structural
problems the country has been experiencing since the 1990s. again, debt and experiencing since the 1990s. again, debtand an experiencing since the 1990s. again, debt and an industrial structure which could not really cope with the competition from around the world. and actually the numbers, the number of poor people has increased, the number of people who are struggling in making ends meet has increased. and so has discontent. and unemployment is still very high, in particular among the young. and this is why these tourney parties got so many is why these tourney parties got so ma ny votes, is why these tourney parties got so many votes, because they're seen as perhaps a new type of government which could perhaps fix some of the ills which have dominated the such a long time, the question is, will they deliver on some of the big promises they made during their election campaigns? well, that is the question. will they deliver? what they have been doing so far is
to say no to everything. so there is not very much an active reform programme, and in particularto not very much an active reform programme, and in particular to look at the structural issues of italy. italy now has an economy which has a duality geographically north and south but also in terms of demographics, younger and older people, those with secure jobs and guaranteed jobs and those who are in precariousjobs. guaranteed jobs and those who are in precarious jobs. these are the issues which need to end. most of all the competitiveness of the economy, this is the key structure. good to talk to you, paola subacchi. let's take a look at some of the other stories making the news. for the week aired it is going to remain dry and fine but there is the chance of some showers developing. the commons foreign affairs committee said london was being used to hide the "corrupt assets"
of president vladimir putin and his allies. japan's exports accelerated in april on increased shipments of cars and machines used to make semiconductors. exports grew 7.8% in april compared to a year earlier, highlighting a rebound in demand from overseas economies. the positive news comes just a week after the country revealed that its economy had shrunk for first time in two years at the beginning of 2018. venezuela's president nicolas maduro has won re—election to another six—year term, in a vote marred by an opposition boycott and claims of vote—rigging. an economic crisis in the country has created an inflation rate measured at several hundred percent. and in some poorer parts of the country, 70% of children sufferfrom malnutrition. let's have a look at markets. asian stocks have benefited from the words of us treasury secretary steve mnuchin over the weekend on trade. the us—china trade war was described as on hold. the nikkei rose after the dollar strengthened against the yen, which lifted exporters. let's ta ke
let's take a quick look at the european stocks, which are now open. a big rise for the london markets. members of the world's leading economies are meeting in argentina at the 620 forum. 0ur south american business reporter daniel gallas says problems facing emerging markets may take centre stage. foreign ministers from g20 countries are meeting today in argentina at a time of great distress for emerging markets. the host country has just ramped up its interest rates to 40% and is asking for a multi—billion dollar loan from the imf. but other emerging markets are suffering too. brazil's currency lost about 20% of its value since the beginning of the year. a lot of it due to changes expected in the united states in interest rates. today's meeting will be about fair and sustainable development and that's exactly the topic that many emerging market ministers will be complaining about to their peers. daniel gallas, bbc news, sao paulo. joining us now is james hughes,
chief market analyst at axitrader. good to see you, james. so, to what extent a re good to see you, james. so, to what extent are you digest in what was said over the weekend by the likes of steve mnuchin and others? well, it is very much what we planned for this week on friday goes completely out of the window from what we saw over the weekend. for now? for now anyway. and as you have already said, especially from steve mnuchin and the us situation, there has not really been any detail, just this headline. but as we know it is headlines which move the markets. the detail, the markets don't really react to! it's going to be a busy morning this morning, we have already seen big moves in the ftse and european stocks and we will be looking towards the us this afternoon, but there is no detail in all of this. but we have seen donald trump bring china to the table and
have these discussions, which i suppose is what he planned for in the first place. and with the meeting with kim jong—un only a few weeks away, that's critical. let's talk about italy, where political events have put pressure on banking stocks with the surge in bond yields? yeah, italian banks have been under pressure for quite a long time, really. it's not something which is the interchange. but with all of this politicaljousting going on in italy, is going to be really interesting to see if any of the plans come to fruition, if any of it really helps the bond yields, or helps the banks. the issue that we have going forward is the fact that really, we've got headlines but we don't know if any of the plans going forward a re don't know if any of the plans going forward are going to happen. the one positive thing we have got is that maybe italy don't want the eurozone to write—off their 300 billion euros worth of debt. how has the european trading and sterling, currencies in general, anything to note or have they just been bubbling general, anything to note or have theyjust been bubbling away? it's
been interesting, really, because you would expect some big swings on the back of this, but it hasn't really been the case. especially with the euro at the moment, there is kind of a fatigue when it comes to any kind of italian politics headlines. it is almost like traders wa nt headlines. it is almost like traders want something more concrete. he's a lwa ys want something more concrete. he's always asking the something more concrete, james! i know! we can't give it to you! still to come — we'll be getting the inside track on how one charity is helping helping young girls from rural india to become top level athletes while learning life skills in the process. you're with business live from bbc news. europe's largest low—cost carrier, ryanair, has posted a record profit of £1.3 billion for the last financial year. however, the carrier warned that profits are likely to fall in the coming year, due to higher costs and stagnant fare prices.
for more on this we're joined by victoria moores, who's the european editor at air transport world. good to talk to you. first of all, talk us through these results? what we're seeing here is another strong performance by rya nair. we're seeing here is another strong performance by ryanair. as you said it is of europe's's largest low—cost carriers, one of its largest airlines, infact carriers, one of its largest airlines, in fact if they have delivered a 10% increase in net profits, a 20% margin, it really is an exigent performance. and its share price, however, is down, which tells us what people think the future holds for ryanair and how it is going to manage certain events that we've seen in the past? exactly. i think the caution is coming from the fact that ryanair has said that its costs are going to increase next year, based on the fa ct increase next year, based on the fact that it had problems with crewe last year, and labour costs have gone up last year, and labour costs have gone up as a last year, and labour costs have gone up as a result of that because
it was faced with strike action and now the airline is becoming unionised, which is something which there ceo michael 0'leary historically resisted. they also say their profits will be 10% down next year, and that means that they're just seeing a few headwinds at the moment, some of which are seen by all european airlines. there is going to be a higher cost of fuel, that makes up about 30% of the costs ofan airline that makes up about 30% of the costs of an airline in general. but also they're facing these increased labour costs, too. and that is structural to their model, so there will be the question of, how competitive can rya nair will be the question of, how competitive can ryanair be in the future to enable it to offer those low fa res ? something she was asking me to ask james about, i didn't realise this has happened, the ftse 100 james about, i didn't realise this has happened, the ftse100 is at a record, it has gone beyond 7800 for the very first time. it has broken through that level,
the first time it has broken through that level and we have seen a number of factors really hitting the markets. feel—good factor from those words of steven mnuchin over the weekend. the price of oil has been going up quite a bit and on the ftse there is lots of big stocks like bp, shell and others that will be riding off the back of that and other energy stocks. you're watching business live — our top story — the world's biggest call to halt tariffs, after talks aimed at persuading china to buy $200 billion of us goods to reduce the trade imbalance. a quick look at how markets are faring. let's look at the ftse100, through that barrier for the very first time of 7800, you can see, 7826, up 0.62%, however, germany not enjoying the benefits today, down by a third ofa
the benefits today, down by a third of a percent. and now let's get the inside track on how one charity is empowering rural indians to take up sport and to compete as athletes. india has a population of 1.2 billion but in 2016's rio olympics the world's largest democracy won just two medals. mann deshi champions are hoping to change that, their sports programme has now trained 4000 athletes, out of which more than 150 are playing on national and international level. this year they have also launched a new initiative to help offer training and employment in the sports industry to young rural girls, with a focus on law enforcement, nutrition and coaching. let's welcome to you all and to the studio, our guest, prabhat sinha, from mann deshi. we met on a train in davos. it's a good story how you met. prabhat and i were struggling with our bags on snowy, icy platforms in
davos and we talked all the way from davos and we talked all the way from davos to zurich and you told me your story. tell us about how you started this. i grew tell us about how you started this. igrew up tell us about how you started this. i grew up in the village of the mann deshi champions, this was in the 19805, deshi champions, this was in the 1980s, we didn't have proper electricity, there would be 18 hours of electricity cuts, the kids and families didn't have the opportunity to watch tv. so we were playing sports but a different type of sport. you would go and watch the hyenas and then go and climb the trees and swim in the lakes. whenever new, jumping into the water, cliff diving, we didn't realise these were sports, cricket is huge in india but in the schools they had no organised sports. this is in rural areas of india? the very poor this is in rural areas of india? the very poor areas. this is in rural areas of india? the very poor areas. yes, the poorer areas, underprivileged, the people
coming to my academies, some of the girls don't even go to school, they do labouring, they would do eight hours of labour in command in the we have two hours of academy, and in the training we give nutrition. how did you get from growing up in that setting to where you are now where you are managing to catapult these young girls, who as you say, they are shepherds, many have not gone to school, to becoming athletes on an international level? i had the opportunity to go to the us and there i played basketball in middle school and high school and that is where it gave me an opportunity to know about how sports have changed my life. i was a boy running around the villages of india with no shoes. when i came back to india after seven or eight years i worked in the sports industry in the us and when i come back i see the difference now that kids and families have mobile phones but they still don't have
shoes to wear. these kids could have a lot of opportunity and potential, some of my athletes have excelled on the national and international level for so these kids who are cutting the sugar cane, one of the athletes, she is now the national hockey captain of the maharashtra hockey team. by cutting the sugar cane and being a shepherd, i found team. by cutting the sugar cane and being a shepherd, ifound her when she used to travel every day, any year she would travel 300 miles with her sheep to find water and then come back. she never went to school in her life but today she is the captain of the team. let's talk about money because it costs money to runa about money because it costs money to run a place like this. where'd you get your funding to run a place like this. where'd you get yourfunding and how to run a place like this. where'd you get your funding and how does to run a place like this. where'd you get yourfunding and how does it work as a business? i know it is charity as well. definitely, the funding is because i have my contacts funding is because i have my co nta cts in funding is because i have my contacts in the us, a lot of donors, lots of athletes are supporting this programme and we also do lots of crowdfunding and at a local level we have companies who are part of it,
and another individual donor who is supporting building the facilities. we started with a running track and today we have a gym, a swimming pool today we have a gym, a swimming pool, so all of this is done in the last four — five years and at the same time, we have employment opportunities. now this is the first time these kids are applying for sportsjobs. i time these kids are applying for sports jobs. i wanted to create sports jobs. i wanted to create sportsjobs in india, 1.2 billion population, but there are not many sportsjobs as in population, but there are not many sports jobs as in the us. population, but there are not many sportsjobs as in the us. i thought about creating sports jobs by giving training and nutrition, becoming a nutritionist, gym trainers. there is so much to discuss. prabhat sinha, thank you fun, for coming in. good to speak to you again. mann deshi, ta ke to speak to you again. mann deshi, take a look at what they are up to.
look at the stories, it is very inspiring. here's a quick reminder of how to get in touch with us. stay up—to—date with the business news how it happens on the business news how it happens on the business news live page, with business news and analysis from our editors around the globe. we also want to hear from you, get involved on the bbc‘s business live web page at bbc/ business, on twitter we are at saint bbc business, and on facebook at bbc news. what you need to know when you need to know. let's see what other stories are being talked about on social media. this story in the guardian, a new starbucks policy that allows nonpaying guests who are not buying a coffee or a sandwich to use the facilities, the wc, the rest room, however you like to describe it, coming off the back of the story recently about two black men who
we re recently about two black men who were arrested at a starbucks without ordering anything. what did we ask? we are going to introduce james who is back in the studio. just explain the story. it was a disaster for starbucks, wasn't it, this happening, in terms of bad press? they are backpedalling, aren't they? these two guys asked to use the rest room, there are two sides to the story, they asked to use the rest room. they then you used the rest room, then they were asked to leave and once they were asked to leave they call the police on them and spent hours in the jail for the fact they didn't want to leave the starbucks. this opens up this whole conversation, starbucks are going to let, in the 8000 stores in the us, allow people to go in and use the rest room and use the loo even without buying anything. should they do that? no, i don't think they
should. really? if you are caught short in a starbucks, you if you've got to go you've got to go. short in a starbucks, you if you've got to go you've got to golj remember as a kid going into a newsagent and reading the football magazines and every time the owner of the newsagent would shout at us to get out because it wasn't a library so we couldn't sit there and read the magazine. that is a bit different. i must admit i have been in manya different. i must admit i have been in many a coffee shop and dashed in with my children, or a pub, in many a coffee shop and dashed in with my children, ora pub, it in many a coffee shop and dashed in with my children, or a pub, it is my children, the three—year—olds desperate for the loo and you have nowhere to go, dashed in and used the facilities and dashed out. we have had a lot of tweets on this. jane green says i think it is a human rights to use a toilet if needed. erin says, yes, road trips plus two small children equals necessity. 0llie says as a bartender i have never had an issue whatsoever with people using the toilet without being a customer provided they asked. i must admit i don't ask, i
just dashed for it. ican imagine just dashed for it. i can imagine you are running. the thing about this is if you allow more people into your store the chances are that more will buy goods because they are in there anyway. they might say i fancy that latte. there is no way starbucks don't have a business angle behind this. they needed to do this to bring themselves back from the brink of a com plete themselves back from the brink of a complete pr disaster. it was an issue and it was a complete pr disaster. if you allow more people into your store the chances are more people are going to buy something. james, as always, good to talk to you. shall we share a few more tweets. trevor says: yes because there are so few public toilets. another story we should start cover. if it is an independent coffee shop i will always buy something, says another viewer. thank you for joining us. thank you for your views as well and we will see you soon. bye— bye. hello. we had a fine weekend for
most parts of the uk, lots of warm sunshine and the theme for this week is for it to continue, for most it will be dry with warm sunny spells, and a chance of some showers particularly in central and southern areas. some of those gibeon the heavy side with some thunder. satellite imagery this morning shows for england and wales, look at the bright lights of the cities and towns, clear start today but more cloud over scotland and northern ireland bringing outbreaks of rain, some of which could be heavy in the morning. it will continue into the afternoon. elsewhere around eastern areas of england patchy mist and low cloud burning back towards the coasts. into the afternoon across england and wales the clouds build—up, and a chance of heavy or thundery showers in central and southern england, the south—east,
the midlands, perhaps the south pennines but those will be hit and miss, for many it will be dry with temperatures in the low 20s. cooler in northern ireland and western scotland, temperatures 9—11dc with the cloud and rain continuing into the cloud and rain continuing into the evening. the showers will gradually fade away across southern areas taking us into tuesday morning and the rain will also fade away across much of northern ireland and western scotland, just a few patches into tuesday. temperatures overnight getting down to about 8—12 degrees. high—pressure dominates things on tuesday. we have a weak weather front in that high across the north and west continuing to bring some outbreaks of cloud, or periods of powder across scotland through northern ireland, looking largely dry compared to today. for england and wales chance of a few showers across southern and wales chance of a few showers across southern areas and wales chance of a few showers across southern areas but most will be dry, temperatures up into the high teens and low 20s, just a bit
cooler in the north—east of scotland compared to today. as for wednesday, again, some low cloud, mist and merck around north—eastern coasts of england and eastern scotland but for most it is a dry day and a sunny day with the sunshine, temperature starting to rise throughout wednesday, turning warm across the south and south—east, temperatures potentially up to 2a, 20 five celsius, 19 degrees in edinburgh but around the coasts of aberdeenshire and the far north—east of england it will be that little bit chilly with temperatures in the low to mid teens. hello, it's 9 o'clock, i'm in for victoria, welcome to the programme "they can kill our sons but they can't kill our spirit." the mum of a man who died in the manchester bombing and the mum of a british teenager who died fighting for is in syria tell us, in an exclusive interview, how they've put aside
their differences to become friends. we lost our sons to the same monster, it doesn't matter in which faith, it's the same organisation, same ideals, that both our sons died for. you can watch that full, exclusive, interview at 9.15. it's nearly a year since 71 people died in the fire at grenfell tower in west london. today, an inquiry opens into what happened — it'll start by hearing from the relatives and